Required information Problem 11-41 (LO 11-3, LO 11-4) (Static) [The following information applies to the questions displayed below.] In year 0, Longworth Partnership purchased a machine for $40,000 to use in its business. In year 3, Longworth sold the machine for $35,000. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $22,000. Note: Loss amounts should be indicated by a minus sign. Leave no answers blank. Enter zero if applicable. Problem 11-41 Part-b (Static) . What are the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are ncreased to $45,000? Answer is complete but not entirely correct. Amount $ 27,000 Description Total Gain or (Loss) Recognized Character of Recognized Gain or (Loss): Ordinary Gain or (Loss) $1231 gain or (loss) $ (27,000) $ (27,000)

Required information Problem 11-41 (LO 11-3, LO 11-4) (Static) [The following information applies to the questions displayed below.] In year 0, Longworth Partnership purchased a machine for $40,000 to use in its business. In year 3, Longworth sold the machine for $35,000. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $22,000. Note: Loss amounts should be indicated by a minus sign. Leave no answers blank. Enter zero if applicable. Problem 11-41 Part-b (Static) . What are the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are ncreased to $45,000? Answer is complete but not entirely correct. Amount $ 27,000 Description Total Gain or (Loss) Recognized Character of Recognized Gain or (Loss): Ordinary Gain or (Loss) $1231 gain or (loss) $ (27,000) $ (27,000)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Gadubhai
Man
(0) Problem 10-54 (LO 10-2, LO 10-3) (Algo) Skip to question Convers Corporation (calendar year-end) acquired the following assets during the current tax year: (ignore §179 expense and bonus depreciation for this problem): (Use MACRS Table 1, Table 2, and Table 5.) Asset Date Placed in Service Original Basis Machinery October 25 $ 102,000 Computer equipment February 3 42,000 Delivery truck* March 17 55,000 Furniture April 22 182,000 Total $ 381,000 *The delivery truck is not a luxury automobile. In addition to these assets, Convers installed qualified real property (MACRS, 15 year, 150% DB) on May 12 at a cost of $620,000. Problem 10-54 Part b (Algo) b. What is the allowable MACRS depreciation on Convers's property in the current year assuming Convers does not elect out of bonus depreciation (but does not take 179 expense)?
Munabhai
dvuben
A
i
Required information Problem 11-46 (LO 11-4) (Algo) (The following information applies to the questions displayed below.) Luke sold a building and the land on which the building sits to his wholly owned corporation, Studemont Corporation, at fair market value. The fair market value of the building was determined to be $407,500; Luke built the building several years ago at a cost of $325,000. Luke had claimed $65,000 of depreciation expense on the building. The fair market value of the land was determined to be $226,000 at the time of the sale; Luke purchased the land many years ago for $177,000. Problem 11-46 Part-a (Algo) a. What are the amount and character of Luke's recognized gain or loss on the building? Amount Required information Problem 11-46 (LO 11-4) (Algo) (The following information applies to the questions displayed below.) Luke sold a building and the land on which the building sits to his wholly owned corporation, Studemont Corporation, at fair market value. The fair…
A3
please show work how its solved thanks.
Problem 12-30 (Algorithmic) (LO. 2, 4) In January of the current year, Wanda transferred machinery worth $355,000 (adjusted basis of $53,250) to a controlled corporation, Oriole, Inc. The transfer qualified under § 351. Wanda had deducted $284,000 of depreciation on the machinery while it was used in her proprietorship. Later during the year, Oriole sells the machinery for $337,250. Answer the following questions regarding the tax consequences to Wanda and to Oriole on the sale of the machinery. a. Does Wanda recognize a gain or loss of any kind on the transfer of the machinery to Oriole? b. Which taxpayers, if any, will recognize a gain as a result of the subsequent sale of the machinery by Oriole? c. What is Oriole's basis in the machinery before the sale? d. What is Oriole's gain from the sale? Oriole has a gain of $ which is treated as
am. 65.